FOR IMMEDIATE RELEASE
Citigroup Inc. (NYSE: C)
November 13, 2007
Citibank Indonesia "Fin-Q" Survey Indicates Urgent Need for Financial Education
Jakarta – Almost six out of ten Indonesians do not know if their savings will enable them to meet their financial commitments and lead a comfortable life throughout retirement, suggests a Financial Quotient Report, the Citi Fin-Q Survey, which Citibank released today.
"Based on the survey results, half of the population does not have a sense of financial security, especially when they grow older," said Shariq Mukhtar, Country Business Manager, Citibank N.A. at the Citibank Financial Bazaar 2007 seminar.
He added that 58% of the 400 respondents polled said they had only an "average" understanding of money management and personal finances and nearly four (39%) out of ten respondents said they would have to depend on contributions from their children if they wanted a comfortable retirement.
Most of them also said that if they lost their jobs tomorrow their savings would last them less than 11 weeks before they run out of money.
"The picture that emerges here is that a large percentage of the population does not feel financially secure even though 54% of the respondents said that they set aside or save some money every time they get paid," said Shariq.
"This is disturbing as people who habitually save still feel financially insecure and points to a dire lack of financial knowledge and planning in many people's lives," he said, adding that this was the precise reason why Citibank organizes seminars such as the Financial Bazaar where clients can learn how to manage their finances better.
In Indonesia, the survey was conducted with 400 respondents across the country. Respondents were between the ages of 18-40 have either a bank account or own a major credit card. An independent research agency, CxC Consulting, conducted the survey and selected the respondents, who did not comprise a Citibank customer base.
"The survey's findings also suggested that individuals who understand the proper financial planning are generally those who belong to the 40 and above age group," said Meliana Sutikno, VP Retail Banking Group Head, Citibank N.A., while explaining the survey result.
"Good financial planning starts from early age. For example, it helps to acquire healthy habits early and learn how to manage one's pocket money. This helps instill disciplined financial planning behavior that can later on be passed on to one's children," she added.
Meliana added that despite of feeling insecure about retirement, some respondents already took actions to secure a better life. She said that 30% of the respondents allocated their money in investment and 25% of them allocated their money in retirement saving account.
At the Citibank Financial Bazaar, Erry Firmansyah, President Director of Jakarta Stock Exchange spoke on "Opportunity through Stock Exchange."
"We support Citibank and its commitment to its customers on financial education. We have also had a similar program to educate consumer and provide the general public with a better understanding on the stock exchange.
The Citibank Financial Bazaar Seminar is a regular event conducted twice a year. It provides an opportunity to customers and the public to obtain more knowledge and information on financial planning. The seminar helps consumers make well informed decisions for their personal financial or business needs.
"As the leading financial institution in the world, Citibank is committed to providing financial education that can help our customers better plan for their future and their children's future," added Mr. Mukhtar.
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Citi
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